(February 28 – 11:00 ET) – Financial planners should be aware that stock options have taken a starring role in Canada as a recruitment and retention tool for top talent.

According to a new report by the Conference Board of Canada, Assessing The Options: Stock Option Plans in Canada, the plans have also helped companies grow. The report finds that companies that offer a stock option plan are expected to expand up to 11% faster than those without such a plan.

Organizations that are smaller and concentrated in technology and other highly skilled industries tend to have more aggressive stock option plans.

However, stock option plans are not without their problems. If a company’s stock price declines, the stock options held can potentially become worthless.

“In an increasingly tight labour market, compensation is a critical lever for organizations as they strive to attract, retain and motivate talented employees,” said Prem Benimadhu, vice president with the Conference Board. “In an attempt to recruit and retain top talent, employers are now offering stock options to employees at all levels within the organization. And this is just the beginning.”
-IE Staff